In order to be appointed as a clearing bank by the State Securities Commission of Vietnam, what conditions must a commercial bank meet?
In order to be appointed as a clearing bank by the State Securities Commission of Vietnam, what conditions must a commercial bank meet?
Pursuant to Clause 2, Article 69 of the 2019 Law on Securities in Vietnam stipulating as follows:
Clearing banks
1. Clearing banks include the State Bank of Vietnam and commercial banks that provide payment services for securities transactions on the securities transaction system.
2. In order to be appointed as a clearing bank by the State Securities Commission, a commercial bank shall have:
a) The license for establishment and operation in Vietnam prescribed by law;
b) A charter capital of over 10.000 billion VND;
c) Profit in the last 02 years;
d) Satisfactory capital adequacy ratios prescribed by banking laws;
d) Technical facilities qualified for payment transactions and connected to the system of the Vietnam Securities Depository and Clearing Corporation;
e) A payment and offsetting system connected to the payment and offsetting system of the State Bank of Vietnam; and
g) Technical facilities capable of retention of transaction information for at least 10 years and provision of such information for the State Securities Commission or the Vietnam Securities Depository and Clearing Corporation within 48 hours upon request.
3. A clearing bank has the following rights and obligations:
a) Separate payments for securities transactions on the securities transaction system from other payments of the bank in accordance with regulations of law on securities and the securities market;
b) Comply with reporting regulations and fill other obligations prescribed by law;
c) Maintain fulfillment of the conditions specified in Clause 2 of this Article.
4. The Government shall specify the documentation and procedures for registration of clearing banks.
Thus, according to the above regulations, in order to be appointed as a clearing bank by the State Securities Commission, a commercial bank shall have:
- The license for establishment and operation in Vietnam prescribed by law;
- A charter capital of over 10.000 billion VND;
- Profit in the last 02 years;
- Satisfactory capital adequacy ratios prescribed by banking laws;
- Technical facilities qualified for payment transactions and connected to the system of the Vietnam Securities Depository and Clearing Corporation;
- A payment and offsetting system connected to the payment and offsetting system of the State Bank of Vietnam; and
- Technical facilities capable of retention of transaction information for at least 10 years and provision of such information for the State Securities Commission or the Vietnam Securities Depository and Clearing Corporation within 48 hours upon request.
In order to be appointed as a clearing bank by the State Securities Commission of Vietnam, what conditions must a commercial bank meet? (Image from the Internet)
What is the latest application form for acting as a clearing bank in Vietnam?
The application form for acting as a clearing bank is Form No. 51 of the Appendix issued together with Decree No. 155/2020/ND-CP. Below is an image of the application form for acting as a clearing bank:
Download the latest application form for acting as a clearing bank in Vietnam: Here.
What is a commercial bank’s application for acting as a clearing bank in Vietnam?
Pursuant to Article 167 of Decree No. 155/2020/ND-CP, a commercial bank’s application for acting as a clearing bank includes:
- The application form No. 51 in the Appendix of Decree No. 155/2020/ND-CP.
- Information about the bank, including fulfillment of the conditions specified in Article 69 of the 2019 Law on Securities in Vietnam.
- The decision on establishment of the commercial bank.
- The written commitment to establish a system and mechanism for management of deposit accounts and money; settlement accounts and money; promptly and fully provide information about deposit and settlement money at the request of the Vietnam Securities Depository and Clearing Corporation and the State Securities Commission.
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